Do You Need Life Insurance?

I have a really hard time talking about anything that involves my demise – or that of anyone else for that matter. I know that life insurance and even a Will are very important things that my husband and I need to discuss. As much as I do not like to think about dying, you never know what is going to happen. That is what makes life so interesting, right?

Do You Need Life Insurance?

When discussing life insurance, I think there is something important to take into consideration. One thing to think about is, if something happened to you, how would that effect your family financially? Is your spouse financially self-sufficient to take on all of the financial obligations that exist and those to come? Do you have children who are still in school? Do you still have a mortgage? Based on how you answered those answers, you will be able to answer the question “Do you need life insurance?”

When I move outside of the dying aspect and consider all of the other fallout it becomes clear to me that we do need to have life insurance. My logic is that if, heaven forbid, something were to happen the last thing I want my husband to worry about is how he is going to support our children. We are not in a happy place financially, so I would not want to put any more of a burden on him or cause any additional stress to out children.

Types of Insurance Policies

There are several different types of insurance polices to choose from, such as Whole-life, Variable, and Term.

Whole-life is basically that, it lasts for your whole life. It is a permanent life insurance policy that combines life coverage with an investment fund. With this policy, part of your premium is goes toward building a cash value from investments made by the insurance company.

Variable is a permanent policy with an investment fund tied to a stock or mutual fund investment. The returns on this policy are not guaranteed.

Term does not have an investment component and it lasts for a set period of time, say 25 years. During those 25 years you do not have to go through any type of physical check-up to see if you qualify.

We have Term, although I believe whole- life is better. Mainly, I think Whole-life because there is not an expiration date. Term life insurance is much more affordable for us. The problem is that every year we do not make the move to Whole-life means the cost will just keep increasing. Nine years ago when we started our Term insurance plans we made them for 20 years and 30 years. Once those years are up we can either renew, at a higher rate based on age and health or do without. Of course we can always switch to Term, but ideally I would not wait until our term expired since the cost is just going to keep rising.

When you have made that decision to buy life insurance, you can either go through your current insurance agent or you can get an instant insurance quote from Mozdex. Ultimately you have to decide what fits into your family budget, and what works best for you overall.

What are your thoughts on life insurance? Do you have it? If so, what type of policy do you have?

A Mommy blogger who loves working from home while raising her 9-year-old daughter and 5-year-old boy/girl twins with her husband. I have a passion for learning and enjoy anything having to do with the technical side of blogging. I am also always working on self-improvement and being the best mom I can to my children. I am also a bit of a coffee addict! ❤

Comments

Well done article. Sound like pretty helpful post. In simple words Insurance is a way of managing risks. When you buy insurance, you transfer your assets risk to the insurance company in exchange for a premium. Insurance protection helps us and our families by providing financial protection.

Life insurance is a strange to think about. My husband and I have recently taken out whole – life insurance. Like you said, if something were to happen to you, you don’t want to burden your spouse with finances. and if you have children, this is even more important.